Coronavirus: UK councils fear bankruptcy amid Covid-19 costs
Image captionSome of the largest UK councils say they may have to declare themselves effectively bankrupt unless the government agrees to further support.
Birmingham City Council - the largest authority in Europe - said"given the size" of its forecast shortfall of £212m across 2020-21 and 2021-22. after £70m government funding already received, a section 114 notice"would not rectify this situation"At least 20 local authorities plan to hold an emergency or in-year budgetWhitehall has alreadyLost business rates,
Plummeting passenger numbers at Luton Airport are contributing to a £49m shortfall at the authority which owns it, Luton Borough Council. A spokesman said it would have"no option but to agree to unprecedented cuts to key services" if more cash was not made available. About 230,000 people live in the Highlands but the area covers just under half the landmass of Scotland.
"Because so much of our budget is tied up in staffing, in order to balance we would need to reduce headcount," he said. A spokesman later stressed it did not anticipate a need to issue a section 114 notice, adding:"We have financial reserves which are well in excess of the impact Covid-19 will have in the current year.
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